IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

Tatsuta Electric Wire & Cable / Event-Driven

<ul>
<li>18 months after announcing the offer, <a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a> launched the <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a> tender offer at unchanged JPY720, 4.9% below the last close price.  </li>
<li>The Board requested a bump, but Eneos refused due to Tatsuta’s missed targets, no competing offer and the supportive updated IFA valuation</li>
<li>The lack of a bump, no vocal opposition, deal fatigue, the Board’s unexpected recommendation, weak earnings and 73.9% takeover premium will help acceptance.</li>
</ul>


18 months after announcing the offer, ENEOS Holdings (5020 JP) launched the Tatsuta Electric Wire &amp; Cable (5809 JP) tender offer at unchanged JPY720, 4.9% below the last close price.  
The Board requested a bump, but Eneos refused due to Tatsuta’s missed targets, no competing offer and the supportive updated IFA valuation
The lack of a bump, no vocal opposition, deal fatigue, the Board’s unexpected recommendation, weak earnings and 73.9% takeover premium will help acceptance.


Tatsuta Electric (5809 JP): Eneos Refuses to Bump, Board Capitulates

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>ENEOS announced its deal for <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a> 18mos ago. China approval took a while. Now they have launched. </li>
<li>The TOPIX Non-Ferrous Metals sector has returned 60%. TOPIX 50%. There is a new TSE Sheriff in town asking for PBR 1.0x. BVPS is up. Presumably, forward CF is up.</li>
<li>But the TOB Price is unchanged. That is disappointing. One reason why a higher price was rejected was that no other buyer approached to take over the company. 🤷🏻‍♂️</li>
</ul>


ENEOS announced its deal for Tatsuta Electric Wire &amp; Cable (5809 JP) 18mos ago. China approval took a while. Now they have launched. 
The TOPIX Non-Ferrous Metals sector has returned 60%. TOPIX 50%. There is a new TSE Sheriff in town asking for PBR 1.0x. BVPS is up. Presumably, forward CF is up.
But the TOB Price is unchanged. That is disappointing. One reason why a higher price was rejected was that no other buyer approached to take over the company. 🤷🏻‍♂️


ENEOS Launches Tatsuta Elec (5809) "Minority" Takeout at Same Price as 18mos Ago

<ul>
<li>18 months after announcing the offer, <a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a> secured SAMR approval for the <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a> tender offer at JPY720 per share.   </li>
<li>The tender offer is expected to be launched on 21 June, subject to securing the recommendation from the special committee and the Board.</li>
<li>A bump is required due to the material market rerating since 21 December 2022. An offer of JPY828, a 15.1% premium to the current offer, implies a P/B of 1x.  </li>
</ul>


18 months after announcing the offer, ENEOS Holdings (5020 JP) secured SAMR approval for the Tatsuta Electric Wire &amp; Cable (5809 JP) tender offer at JPY720 per share.   
The tender offer is expected to be launched on 21 June, subject to securing the recommendation from the special committee and the Board.
A bump is required due to the material market rerating since 21 December 2022. An offer of JPY828, a 15.1% premium to the current offer, implies a P/B of 1x.  


Tatsuta Electric (5809 JP): Eneos Finally Secures SAMR Approval but Needs to Bump

<ul>
<li>
<a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a> announced a deal to buy out their affiliate <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a> 18 months ago. The TOB was expected to start June 2023.</li>
<li>June 2023 came around and China's SAMR still hadn't approved. ENEOS provided quarterly updates in Sep and Dec and monthly updates since. The May update was different. </li>
<li>The May update cut the "re-update" schedule to mid-month June. There are reasons to look at what has changed since the Dec 2022 announcement. </li>
</ul>



ENEOS Holdings (5020 JP) announced a deal to buy out their affiliate Tatsuta Electric Wire &amp; Cable (5809 JP) 18 months ago. The TOB was expected to start June 2023.
June 2023 came around and China's SAMR still hadn't approved. ENEOS provided quarterly updates in Sep and Dec and monthly updates since. The May update was different. 
The May update cut the "re-update" schedule to mid-month June. There are reasons to look at what has changed since the Dec 2022 announcement. 


Tatsuta Electric (5809 JP) Crunch Time = Bump Time?

David Blennerhassett

<ul>
<li>For the month of June 2024, 8 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$6bn.</li>
<li>The average premium for the new transactions announced (or first discussed) in June was ~52%. The average premium YTD is ~47%. </li>
<li>This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.</li>
</ul>


For the month of June 2024, 8 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$6bn.
The average premium for the new transactions announced (or first discussed) in June was ~52%. The average premium YTD is ~47%. 
This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.


(Mostly) Asia M&A, June 2024: Fancl, Capitol Health, Infocom,Jeisys Medical, Nagatanien, Henlius Bio

Japan

TATSUTA ELECTRIC WIRE AND CABLE CO., LTD. manufactures wires and cables. The Company's products include power cables, optic fiber cables and its related devices, bonding wires, and water leakage detection systems.  Tatsuta Wire & Cable also produces environmentally friendly cables.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Tatsuta Electric Wire & Cable (5809 JP)

Tatsuta Electric (5809 JP): Eneos Refuses to Bump, Board Capitulates

The lack of a bump, no vocal opposition, deal fatigue, the Board’s unexpected recommendation, weak earnings and 73.9% takeover premium will help...

Arun George

ENEOS Launches Tatsuta Elec (5809) "Minority" Takeout at Same Price as 18mos Ago

ENEOS has launched its TOB for the rest of Tatsuta Electric at ¥720/share - the same price as it announced 18mos ago. Passage of time? Sector...

Travis Lundy

Tatsuta Electric (5809 JP): Eneos Finally Secures SAMR Approval but Needs to Bump

A bump is required due to the material market rerating since 21 December 2022. An offer of JPY828, a 15.1% premium to the current offer, implies a...

Arun George

Tatsuta Electric (5809 JP) Crunch Time = Bump Time?

ENEOS' takeover of Tatsuta Electric is now 18mos in process - 12mos beyond expected launch date. Progress report timing changed end-May. Update/TOB...

Travis Lundy

(Mostly) Asia M&A, June 2024: Fancl, Capitol Health, Infocom,Jeisys Medical, Nagatanien, Henlius Bio

For the month of June, 8 new deals were discussed on Smartkarma with an overall deal size of ~US$6bn. The average premium for the new deals...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)